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The Short Answer

Handy Weapons in an Inflation Fighter's Arsenal

We take a close look at TIPS and I Bonds, investment products that can help preserve your long-term purchasing power.

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After laying low for several quarters, inflation is stirring. In fact, the Federal Reserve explicitly mentioned realized and expected inflation in its decision to raise the target range for the federal funds rate on March 15.

Not everyone needs an investment that provides explicit inflation protection in their portfolio. As discussed in this article, many younger investors already have some built-in protection from inflation in the form of steadily increasing wages and a heavy exposure to equities, which have a good chance of outpacing inflation over long periods.

Karen Wallace does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.